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In a recent filing with the Securities and Exchange Commission, Joseph M. Limber, a director at XOMA Royalty Corp (NASDAQ:XOMA), disclosed a series of significant stock purchases. The insider buying comes as XOMA trades near its 52-week low of $18.73, with InvestingPro data indicating oversold conditions. On April 3rd, Limber acquired 16,524 depositary shares of the 8.375% Series B Cumulative Stock at a weighted average price of $25.22 per share. The purchase was executed in multiple trades at prices ranging from $25.19 to $25.27.
Further transactions included the acquisition of 1,411 shares of the 8.625% Series A Cumulative Perpetual Preferred Stock at $25.44 per share on the same day. On April 4th, Limber continued his buying spree with 3,476 additional shares of the Series B stock at a weighted average price of $25.25, followed by 3,346 shares of the Series A stock at $25.56. The buying activity concluded on April 7th with another 5,243 shares of the Series A stock purchased at $25.60 per share.
These transactions collectively amounted to a total investment of approximately $760,144, with the price per share ranging from $25.22 to $25.60. Limber's acquisitions reflect a notable increase in his holdings in XOMA Royalty Corp, a company specializing in pharmaceutical preparations. The company maintains impressive gross profit margins of nearly 90% and a strong liquidity position with a current ratio of 5.15. InvestingPro offers 5 additional key insights about XOMA's financial health and growth prospects.
In other recent news, XOMA Ltd . reported its 2024 financial results, which included a GAAP EPS of ($1.65), falling short of the estimated ($0.40). The company's full-year revenue reached $28.5 million, slightly below the forecast of $30.8 million. Despite this earnings miss, H.C. Wainwright maintained a Buy rating on XOMA with a price target of $104.00, showing confidence in the company's strategic approach and potential for growth. Notably, the firm highlighted the importance of XOMA's robust royalty portfolio, which continues to provide a buffer against potential negative developments in partnered programs.
The company's revenue was supported by royalties and milestones, with significant contributions from products like Vabysmo and Ojemda. XOMA also committed $65 million to strategic transactions in 2024 aimed at fostering long-term growth. Additionally, the company's partner Rezolute (NASDAQ:RZLT) announced that its drug candidate ersodetug (RZ358) received Breakthrough Therapy Designation from the FDA, which could lead to high-single to mid-teen percentage royalties for XOMA if approved. This development is part of XOMA's broader strategy to expand its royalty income and mitigate risks associated with drug development.
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